Meta Faces US Lawsuit from Australian Billionaire Forrest Over Scam Crypto Ads

Meta Platforms must face a lawsuit from Australian billionaire Andrew Forrest over Facebook ads promoting fraudulent cryptocurrency investments, a U.S. judge ruled on June 17.

Judge Denies Meta's Motion to Dismiss Andrew Forrest's Lawsuit Over Misleading Cryptocurrency Ads

According to Reuters, Meta Platforms' request to dismiss a lawsuit filed by billionaire Australian mining magnate Andrew Forrest regarding Facebook advertisements that depict him promoting bogus cryptocurrency and other fraudulent investments was denied by a U.S. judge.

On June 17, U.S. District Judge Casey Pitts in San Jose, California, ruled that Australia's second-richest individual could demonstrate that Meta's negligence in permitting the advertisements violated its obligation to operate commercially reasonably.

Forrest may also attempt to demonstrate that Meta, rather than solely the perpetrator of fraudulent advertisements, misappropriated his name and visage.

"Dr. Forrest claims that Meta profited more from ads that included his likeness than it would have if the ads had not," Pitts wrote. "This is enough to adequately plead that the alleged misappropriation was to Meta's advantage."

Lawyers for Meta declined to comment on June 18.

The Palo Alto, California-based company had contended that Section 230 of the federal Communications Decency Act shielded it from liability as a publisher of third-party content.

However, the judge said Forrest's claims "present a factual dispute regarding whether Meta's ad systems were neutral tools that anyone could use (or misuse) or whether the tools themselves contributed to the content of the ads.”

Forrest stated that over 1,000 advertisements were displayed on Facebook in Australia between April and November 2023, resulting in millions of dollars in losses for the victims.

Forbes Values Andrew Forrest at $16.5 Billion as He Marks Legal Milestone Against Meta

Forbes magazine estimates that the 62-year-old executive chairman of Fortescue Metals Group, an iron ore producer, and his family are valued at US$16.5 billion (AUD$24.8 billion).

Forrest stated that Pitts' decision was the first time a social media company could not invoke Section 230 immunity in a U.S. civil case involving its advertising business.

"This is a crucial strategic victory in the battle to hold Facebook accountable," he said.

Forrest is requesting punitive and compensatory damages.

In April, Australian prosecutors declined to pursue criminal proceedings against Meta in that country for the use of fraudulent cryptocurrency advertisements.

Forrest had filed a lawsuit under Australian laws that permitted individuals to prosecute foreign companies criminally with prosecutors' approval. The case is Forrest v Facebook Inc et al., U.S. District Court, Northern District of California, No. 22-03699.

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